1.  The previous years figures have been reworked, regrouped,
 rearranged and reclassified wherever necessary. Amounts and other
 disclosures for the preceding year are included as an integral part of
 the current year financial statements and are to be read in relation to
 the amounts and other disclosures relating to the current year.
 
 2.  The disclosure as per Accounting Standard (AS) 15 (Revised)
 Employee Benefits as notified by company (Accounting Standard) Rules,
 2006 are as under:
 
 Defined Contribution Plan: Contribution to Defined Contribution Plan,
 recognized as expense for the year are as under:
 
 Gratuity paid by the company is a defined benefit plan.  The present
 value of obligation is determined based on actuarial valuation using
 the projected unit credit method, which recognizes each period of
 service as giving rise to additional unit of employee benefit
 entitlement and measures each unit separately to build up the final
 obligation.
 
 The estimates of rate of escalation in salary considered in actuarial
 valuation, take into account inflation, seniority, promotion and other
 relevant factors including supply and demand in the employment market.
 The above information is certified by the actuary.
 
 The expected rate of return on plan assets is determined considering
 several applicable factors mainly the composition of plan assets held,
 assessed risks historical results of return on plan assets and the
 Companys policy for plan asset management.
 
 (iii) Disclosure in Respect of Material Related Party Transactions
 during the year:
 
 1.  Purchase of Fixed Assets from Avon Organics Limited Rs. 0.16 Crores
 (Previous Year Rs. Nil).
 
 2.  Purchase / Subscription of Investments in Avon Organics Ltd. Rs.
 Nil (Previous Year Rs. 9.83 Crores) and Benzochem Life Sciences Pvt.
 Ltd. Rs. Nil (Previous Year Rs.22.50 Crores).
 
 3.  Debentures issued to Arch Pharmachem Ltd. Rs. 5 Crores (Previous
 Year Rs. 50 Crores and Arch Impex Pvt. Ltd. Rs. Nil (Previous Year Rs.
 25 Crores).
 
 4.  Debentures issued, redeemed Arch Pharmachem Ltd.  Rs. 50 Crores
 (Previous Year Rs. Nil) and Arch Impex Pvt. Ltd. Rs. 20 Crores
 (Previous Year Rs. Nil).
 
 5.  Share application money received from AMR Investments Private
 Limited Rs. 25 Crores (Previous Year Rs. Nil) and Arch Pharmachem Ltd.
 Rs. 5 Crores (Previous Year Rs. Nil).
 
 6.  Business acquisition from Arch Life Sciences Ltd.  Rs.Nil (Previous
 Year Rs. 5.29 Crores), Arch Fine Chemicals Ltd. Rs. Nil (Previous Year
 Rs. 10.02 Crores) and Benzochem Life Sciences Pvt. Ltd. Rs. Nil
 (Previous Year Rs. 32 Crores).
 
 7.  Loans and Advances given to Arch Pharmalabs (USA) Inc Rs. 4.63
 Crores (Previous Year Rs. 5.43 Crores).
 
 8.  Deposits given to Avon Organics Ltd. Rs. Nil (Previous Year given
 Rs. 15 Crores)
 
 9.  Turnover include Avon Organics Ltd. Rs. 3.44 Crores (Previous Year
 Rs. 7.07 Crores), Arch Fine Chemicals Ltd. Rs. Nil (Previous Year Rs.
 3.87 Crores), Arch Life Sciences Ltd. Rs. Nil (Previous Year Rs. 2.80
 Crores).
 
 10. Purchases from Avon Organics Ltd. Rs.7.08 Crores (Previous Year Rs.
 7.76 Crores), Arch Fine Chemicals Ltd. Rs. Nil (Previous Year Rs. 2.13
 Crores), Benzochem Life Sciences Pvt .Ltd. Rs. Nil (Previous Year Rs.
 2.20 Crores).
 
 11. Conversion Charges paid to Avon Organics Ltd.  Rs. 1.46 Crores
 (Previous Year Rs. 1.39 Crores).
 
 12. Interest on Debentures paid to Arch Pharmachem Ltd. Rs. 7.84 Crores
 (Previous Year Rs. Nil) and Arch Impex Pvt. Ltd. Rs. 3.56 Crores
 (Previous Year Rs. 1.07 Crores).
 
 13. Payment to Key Management Personnel include to Mr. Ajit A. Kamath
 Rs. 0.45 Crores (Previous Year Rs. 0.45 Crores), Mr. T Mallikarjuna
 Reddy Rs. 0.40 Crores (Previous Year Rs. 0.23 Crores) Mr. Manoj T. Jain
 Rs. 0.38 Crores (Previous Year Rs. 0.38 Crores) and Mr. Rajendra R
 Kaimal Rs. 0.33 Crores (Previous Year Rs. 0.33 Crores).
 
 14. Guarantees for subsidiaries includes Avon Organics Ltd. Rs.
 104.50Crores (Previous Year Rs.57.50 Crores).
 
 7. The disclosures as per Accounting Standard (AS) 17 on Segment
 Reporting as notified by Companies (Accounting Standard) Rules, 2006
 segment information is given as under:
 
 a. Primary segment information
 
 The Company is engaged solely in the business of Pharmaceuticals,
 APIs and Intermediates. The entire operations are governed by the
 same set of risk and returns and hence the same has been considered as
 representing a single primary segment.
 
 8. The Company has not received the required information from Suppliers
 regarding their status under the Micro, Small and Medium Enterprises
 Development Act, 2006.  Hence, disclosure relating to amounts unpaid as
 at the year end together with interest paid / payable as required under
 the said Act have not been made.
 
 Profits for the current year are lower by Rs. 11.60 Crores on account
 of the above adjustments / modification of opening balance. Profits for
 the current year are further lower by Rs. 6.29 Crores on account of
 reworking of overhead allocation on closing inventories as at
 31.03.2009. No adjustment / modification are made in the accounts for
 this as the reworked amount is offsetted by way brought forward opening
 balances of inventories in profit and loss account.
 
 14. In the opinion of Board, carrying value of all current assets,
 loans and advances and other receivables are not less than their
 realizable value in the ordinary course of business.